Mainers May Be Hot to Invest in Marijuana, but Out-of-State Money Is Still a Necessity

The website patch.com has posted a report that Maine is the no.1 state for marijuana investments. This doesn’t mean that Maine has the most investor dollars in marijuana, but just that Maine investors are more interested on average in marijuana stocks than investors in other states. I took interest in this report because it brings us back to our concerns over Maine’s restrictions on out-of-state investment in marijuana businesses. Sure, a high percentage of Maine residents are interested in the pot sector, but there just aren’t that many Maine investors compared to other states, and even fewer high-dollar investors. 

Starting a sophisticated marijuana business takes a lot of capital and banks are lending to this sector, so investment is needed. By necessity, the bulk of this investment needs to come from out of state to really jumpstart Maine’s adult use sector. Overly restrictive laws that prohibit this investment will only stifle the industry.

The FDA Thinks There “May Be” Some Products That Add CBD to Food – What Are They Gonna Do About It?

Last week, the FDA made yet another effort to clarify the status of CBD under federal law with a “What you need to know” webpage. The FDA continues to state that, aside from Epidiolex, it “has not approved any other CBD products.” Yet, the FDA acknowledges, in what may be the understatement of the century, that “we are aware that there may be some products on the market that add CBD to a food.” You think? Square that acknowledgment with the fact that, according to the Washington Post, more than 1,000 CBD-infused products are now available online, or with Carl's Jr. rolling out a CBD-infused special sauce burger in Denver for 4/20 Day. 

While the FDA goes through its process and tries to figure out what to do about CBD, the industry isn’t waiting around. It seems like the feds are going to have a lot of catching up to do. But as regulations do roll out, eventually, this could change the enforcement landscape. A broad prohibition simply can’t be meaningfully enforced since the number of violations is astronomical, but more tailored regulations by the FDA could prove easier to enforce, depending on what they look like. For now, we’ll keep monitoring.